AI took a turn on the red carpet at last night's MTV Video Music Awards. Viewers could use a "shoppable lens" from Shopsense, to shop the fit of any celebrity walking the red carpet. I think this tech is going to be massive.
AI took a turn on the red carpet at last night's MTV Video Music Awards. Viewers could use a "shoppable lens" from Shopsense, to shop the fit of any celebrity walking the red carpet. I think this tech is going to be massive. Imagine using an app to take a picture of any TV show or live event and instantly being taken to shopping options that will help you dress as well as your favorite celebs. Seem's like a winning idea to me; retailers should jump on it. We have 8 more winning ideas in this week's update, read on to learn more...
Paramount partnered with Shopsense AI to introduce an AI-powered "Shoppable Lens" at the 2024 MTV Video Music Awards (VMAs) last night (September 11th, 2024). This groundbreaking technology allowed viewers to instantly purchase outfits and accessories worn by celebrities on the red carpet by simply tapping on them during the live broadcast. By seamlessly connecting entertainment content with shoppable products, retailers can monetize influential fashion moments and drive immediate sales.
The AI Lens technology creates an immersive shopping experience that capitalizes on the widespread interest and demand sparked by high-profile celebrity appearances. For retailers, this innovative feature presents a unique opportunity to reach and engage consumers in a highly targeted and contextual manner, potentially boosting sales and brand awareness.
Profitmind thinks: Implementing AI-powered shoppable experiences like the Shoppable Lens could generate a 15-20% uplift in sales for retailers offering celebrity-endorsed products or apparel featured at major events. This estimate is based on industry data indicating that AI product recognition tools can increase conversion rates by up to 30% and drive a 10-15% increase in average order value by enabling seamless product discovery and purchasing.
Learn More:
https://www.cnbc.com/2024/09/11/mtv-vmas-2024-live-shopping-is-coming-to-the-red-carpet.html
Walmart has partnered with Parafin, a financial technology company, to provide financing options for sellers on the Walmart Marketplace platform. This collaboration aims to help sellers access working capital and expand their businesses by offering revenue-based financing solutions. With Parafin's financing, Walmart Marketplace sellers can potentially increase their inventory levels, enabling them to meet higher demand and boost their sales on the platform.
By addressing the capital needs of sellers, this partnership could enhance the overall seller experience and product assortment on Walmart Marketplace, potentially driving increased profitability for both Walmart and its third-party sellers. It also demonstrates Walmart's commitment to supporting the growth and success of its seller community, fostering a more robust and competitive online marketplace.
Profitmind thinks: Providing financing options to third-party sellers could unlock a 10-15% increase in sales for Walmart Marketplace. This estimate is based on industry data suggesting that access to working capital enables sellers to expand inventory by an average of 20%, leading to a corresponding uplift in sales. Additionally, a more diverse and well-stocked product assortment on the marketplace could drive a 5-10% increase in customer loyalty and repeat purchases.
Learn More:
Nostra AI, a software company focused on conversion optimization for e-commerce brands, has secured $8.9 million in funding. The investment round was led by High Alpha, with participation from notable industry experts like Matthew Prince, CEO and co-founder of Cloudflare. The funding will be used to enhance Nostra AI's capabilities in making e-commerce websites faster and improving their performance.
For retailers, faster website speeds can lead to higher conversion rates and increased sales. Even minor improvements in load times can result in significant revenue gains across high-traffic e-commerce platforms. By leveraging Nostra AI's solutions, retailers can provide a seamless and efficient online shopping experience, potentially driving customer satisfaction and loyalty.
Additionally, major online ad platforms like Google and Meta use algorithms to evaluate ads and their linked landing pages, assigning relevancy scores that impact costs and performance. Highly relevant, well-optimized landing pages tend to receive better relevancy scores, reducing overall ad costs for retailers and improving return on ad spend.
Profitmind thinks: Optimizing e-commerce website speed can yield a 5-10% increase in conversion rates and a 2-5% boost in average order value for retailers. This estimate is based on industry data indicating that a 1-second improvement in page load times can increase conversion rates by up to 7% and increase customer satisfaction by 16%, leading to higher spending. Implementing website performance enhancements could translate into millions in additional revenue for high-volume e-commerce businesses. Improving landing page relevancy scores by just 10% could translate into a 2-5% reduction in overall advertising costs for retailers, directly impacting profitability.
Learn More:
https://www.practicalecommerce.com/genai-is-a-potent-ecommerce-coding-tool
https://www.practicalecommerce.com/optimized-landing-pages-reduce-ad-costs
EasyPost, a shipping solutions provider, has partnered with DHL eCommerce DHL to introduce two new low-cost international shipping options for small and midsize e-commerce businesses (SMBs). The new solutions, DHL Parcel Int'l. Direct - SMB and DHL Parcel Int'l. Standard - SMB, are now available on the EasyPost platform. This partnership addresses the increasing need for affordable and reliable international shipping as global e-commerce continues to grow.
By offering these cost-effective options, EasyPost and DHL aim to help SMBs expand their reach and improve their international shipping capabilities, potentially boosting their sales and profitability in overseas markets. It also demonstrates the growing importance of providing efficient and streamlined logistics solutions to support the growth of e-commerce businesses, particularly in the SMB segment.
Profitmind thinks: Offering competitive international shipping rates could unlock a 10-20% increase in international sales for SMB e-commerce retailers. This estimate is based on industry data suggesting that affordable shipping rates are a key factor in driving cross-border purchases, with over 60% of international shoppers citing high shipping costs as a barrier to completing transactions. By partnering with EasyPost and DHL, SMBs can potentially capture a larger share of the global e-commerce market while maintaining profitability through optimized logistics costs.
Learn More:
https://www.practicalecommerce.com/new-ecommerce-tools-september-5-2024
Temu, the rapidly growing e-commerce platform, has opened registration for European merchants to become sellers on its platform. Merchants will manage their own product assortment, inventory, and shipping of sold items, while Temu sets the consumer prices. In addition to its initial consignment model, Temu recently introduced a local-to-local fulfillment option for sellers.
This move allows Temu to further expand its product offerings and potentially improve delivery times for European customers. By enabling local merchants to sell on its platform, Temu could drive increased sales and profitability for retailers by providing access to a wider customer base and more efficient logistics.
Profitmind thinks: Expanding its seller base to Europe could drive a 15-25% increase in sales for Temu within the first year of operation in the region. This estimate is based on industry data suggesting that the introduction of local sellers and fulfillment options can significantly boost customer adoption and sales on e-commerce platforms, particularly in new markets where logistical challenges and cultural preferences play a crucial role. By leveraging local sellers and optimizing delivery times, Temu could capture a larger share of the European e-commerce market and drive incremental revenue growth.
Learn More:
https://ecommercenews.eu/temu-declares-european-marketplace-open/
Inditex, the parent company of Zara, has maintained its leadership in fashion retail by offering a seamless shopping experience across online and offline channels. The company's integration of inventory and logistics allows customers to effortlessly purchase items online and pick them up in physical stores or have them delivered, providing a convenient and unified experience that drives customer satisfaction and sales.
Retailers like ochama are also expanding their omnichannel capabilities. The Chinese ecommerce brand introduced a network of pickup points and next-day home delivery services in France, offering French consumers greater convenience and faster fulfillment options, potentially boosting sales and customer loyalty.
Profitmind thinks: Implementing omnichannel capabilities could increase customer retention rates by 20-30%, translating into a 5-10% boost in annual revenue for retailers. Seamless integration of online and offline channels can also reduce operational costs by 10-15% through improved inventory management and logistics efficiencies.\
Learn More:
https://ecommercenews.eu/ochama-expands-logistics-in-france/
In summary, this week's newsletter highlights the transformative potential of AI, strategic partnerships, and innovative business models in driving retail profitability. By embracing technologies like AI-powered shoppable lenses, optimizing e-commerce performance, and expanding into new markets, retailers can unlock significant revenue opportunities and stay ahead of the curve. Additionally, providing financing options and streamlining logistics can empower sellers and SMBs, fostering a more robust and competitive retail ecosystem. As the retail landscape continues to evolve, those who capitalize on these emerging trends will be well-positioned to thrive in an increasingly digital and customer-centric market.
The potential benefits identified are substantial.
This week we identified:
- 4 Incremental Sales Ideas Each Worth 10%-30% of Annual Sales
- 2 Cost Reduction Ideas Each Worth 5%-15% of Total Costs
- 3 Customer Retention Ideas Each Worth 5%-20% of Total Sales
As retailers navigate these exciting developments, Profitmind stands ready to support their journey towards increased profitability.
Please subscribe to our newsletter and stay updated on the latest retail trends and strategies. Additionally, schedule a demo at https://www.profitmind.com/#Demo_Schedule to learn how Profitmind's cutting-edge solutions can help boost your business profitability and drive sustainable growth.
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